Are You Entitled To Substantial Tax Relief Through Capital Allowances On Your Commercial Property?
If you or your business is an owner or an occupier of commercial property, you may be entitled to claim substantial tax relief through capital allowances.
What Are Commercial Property Capital Allowances?
Commercial Property capital allowances are a tax deduction to allow for the wearing out of plant and machinery over time. Within buildings, the tax definition of plant and machinery includes integral items, such as heating and cooling systems, electrical systems, alarm systems, lighting, kitchens, sanitary ware and lift equipment.
It's a mistake to assume your accountant will have secured all the commercial property capital allowances you're entitled to claim. Whilst they should have knowledge of the tax system, they're unlikely to have the valuation and real estate expertise to maximise the commercial property capital allowances available.
In conjunction with your accountant, specialist tax advisors and chartered surveyors can identify and categorise all the assets that qualify for commercial property capital allowances, to reduce your tax liability. They could enable you to:
- Maximise your tax relief
- Reclaim overpaid tax
- Reclaim a tax rebate from HMRC
- Reduce your current and future bills
The good news is that commercial property capital allowances can be claimed by individuals and businesses. But as property owned by pension funds is not subject to tax, there's no tax advantage to be gained here.
Are You Missing Out On Commercial Property Capital Allowances?
Experience reveals that many owners and users of commercial property, both in the UK and overseas, vastly under-estimate the definition of plant for the purpose of commercial property capital allowances.
By using the services of qualified tax advisors and specialist chartered surveyors, such as Savills, a world renowned UK-based International Property Services Company, you might be able to secure tax relief of up to 35% of acquisition costs. What's more, a staggering tax relief of up to 70% of any refurbishment costs may also be secured.
Four Profitable Case Studies
Below are four case studies undertaken by Savills. Click on any image to read the detail.
How To Maximise Your Commercial Property Capital Allowances
It's vital you and your accountant work alongside a multi-disciplinary team covering the three main areas essential to maximise your benefit.
Tax and Accountancy
Assessing the complex area of case law, ever–changing tax legislation and wider tax issues to establish what qualifies and on what technical entitlement basis.
Understanding both construction costs and the building process to accurately calculate the value and amount of your qualifying assets.
Providing accurate and thoroughly researched land and property values, which is an essential and often disputed area of the overall commercial property capital allowances valuation process.
Find Out How Much Could You Save With A Free Review
You don't have to take a risk to find out how much you could claim. The most reputable firms will carry out a free review of your commercial property, concluding in a report exactly how much you're entitled to claim. They work on a 'no win, no fee' basis, typically charging a fee of up to 6% of the tax you will save.
If you're an owner or an occupier of a commercial property, don't miss out. We can introduce you to a leading firm who will help you identify all the commercial property capital allowances you're entitled to claim.
For a free review, please get in touch with us using our contact form.
Please Share This
If any of your friends or colleagues are owners or occupiers of commercial property and would like a free appraisal of their commercial property capital allowances, please give them a link to this article. Thanks for sharing.
If you enjoyed this article, get email updates (it's free)
As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk. Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.
Please read our full Terms which includes criteria for SIPPclub membership.
UK tax legislation is subject to change and the information in this article was correct at the time of publication (November 2013). An individual’s tax affairs are personal and as such not everyone can benefit from capital allowances.